The Supreme Court’s third foray into the constitutionality of the Affordable Care Act (ACA), characterized by the dissent as the Supreme Court’s “epic Affordable Care Act trilogy,” once again reaffirmed the constitutionality of the ACA. On June 17, in a 7-2 decision, the Supreme Court held that the groups of individuals and states calling for the ACA to be overturned lacked standing to challenge the law because they could not show that it caused them measurable harm.
With the constitutionality of the ACA reaffirmed once again by the Supreme Court, the ACA’s provisions regarding the employer mandate for applicable large employers continue in effect. These provisions include providing an offer of minimum essential coverage to eligible employees, tracking hours to determine employee eligibility, filing annual ACA returns with the Internal Revenue Service, and ensuring employees receive the required annual ACA disclosures. Employers are encouraged to review their health plans and ensure they are being administered in accordance with the ACA employer mandate requirements.
Employers should also confirm that all annual information returns have been timely filed. The Internal Revenue Service is assessing significant penalties against employers for failure to annually file Forms 1094-C and distribute Form 1095-C to employees.
In addition, employers should be aware that the ACA’s patient protection provisions have been modified and expanded by the Consolidated Appropriations Act, 2021, for plan years beginning on or after 1 January 2022.
You can read more about the Court’s decision and actions for employers here.